MANAGERIAL/ECON+BUS/STR CONNECT ACCESS
9th Edition
ISBN: 2810022149537
Author: Baye
Publisher: MCG
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Chapter 7, Problem 11PAA
To determine
To interpret:Report of the statement.
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An industry consists of three firms with sales of $300,000, $700,000, and $250,000. a. Calculate the Herfindahl-Hirschman index (HHI). b. Calculate the four-firm concentration ratio (C4). c. Based on the FTC and DOJ Horizontal Merger Guidelines described in the text, do you think the Department of Justice would attempt to block a horizontal merger between two firms with sales of $300,000 and $250,000? Explain.
Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 22 percent, 22 percent, 18 percent, 11 percent, 10 percent,
9 percent, and 8 percent.
The four-firm concentration ratio for the hamburger industry in this town is 73 percent. (Enter your response as a whole number.)
The Herfindahl index for the hamburger industry in this town is 1658. (Enter your response as a whole number.)
Suppose the top three sellers combined to form a single firm.
The four-firm concentration ratio would be
percent. (Enter your response as a whole number.)
Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 22 percent, 22 percent, 18 percent, 11 percent, 10 percent,
9 percent, and 8 percent.
The four-firm concentration ratio for the hamburger industry in this town is 73 percent. (Enter your response as a whole number.)
The Herfindahl index for the hamburger industry in this town is 1658. (Enter your response as a whole number.)
Suppose the top three sellers combined to form a single firm.
The four-firm concentration ratio would be 92 percent. (Enter your response as a whole number.)
Suppose the top three sellers combined to form a single firm.
The Herfindahl index would be (Enter your response as a whole number.)
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